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Fair Value (Tables)
 12 Months Ended
Dec. 31, 2011
Fair Value Disclosures [Abstract]  
Assets and liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis are summarized below.
December 31, 2011
 
 
 
 
 
 
Total
Assets/(Liabilities)
at Fair Value
(In millions)
Level 1
 
Level 2
 
Level 3
 
Assets
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
Corporate and other bonds
$
—

 
$
20,402

 
$
482

 
$
20,884

States, municipalities and political subdivisions
—

 
9,611

 
171

 
9,782

Asset-backed:
 
 
 
 
 
 
 
Residential mortgage-backed
—

 
5,323

 
452

 
5,775

Commercial mortgage-backed
—

 
1,295

 
59

 
1,354

Other asset-backed
—

 
612

 
343

 
955

Total asset-backed
—

 
7,230

 
854

 
8,084

U.S. Treasury and obligations of government-sponsored enterprises
451

 
42

 
—

 
493

Foreign government
92

 
544

 
—

 
636

Redeemable preferred stock
5

 
53

 
—

 
58

Total fixed maturity securities
548

 
37,882

 
1,507

 
39,937

Equity securities
124

 
113

 
67

 
304

Derivative and other financial instruments, included in Other invested assets
—

 
1

 
11

 
12

Short term investments
1,106

 
508

 
27

 
1,641

Life settlement contracts, included in Other assets
—

 
—

 
117

 
117

Separate account business
21

 
373

 
23

 
417

Total assets
$
1,799

 
$
38,877

 
$
1,752

 
$
42,428

Liabilities
 

 
 
 
 

 
 

Derivative financial instruments, included in Other liabilities
$
—

 
$
—

 
$
(1
)
 
$
(1
)
Total liabilities
$
—

 
$
—

 
$
(1
)
 
$
(1
)
December 31, 2010
 
 
 
 
 
 
Total
Assets/(Liabilities)
at Fair Value
(In millions)
Level 1
 
Level 2
 
Level 3
 
Assets
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
Corporate and other bonds
$
—

 
$
20,407

 
$
624

 
$
21,031

States, municipalities and political subdivisions
—

 
7,623

 
266

 
7,889

Asset-backed:
 
 
 
 
 
 
 

Residential mortgage-backed
—

 
5,323

 
767

 
6,090

Commercial mortgage-backed
—

 
920

 
73

 
993

Other asset-backed
—

 
404

 
359

 
763

Total asset-backed
—

 
6,647

 
1,199

 
7,846

U.S. Treasury and obligations of government-sponsored enterprises
76

 
61

 
—

 
137

Foreign government
115

 
505

 
—

 
620

Redeemable preferred stock
3

 
48

 
3

 
54

Total fixed maturity securities
194

 
35,291

 
2,092

 
37,577

Equity securities
288

 
126

 
26

 
440

Derivative and other financial instruments, included in Other invested assets
—

 
—

 
27

 
27

Short term investments
1,214

 
974

 
27

 
2,215

Life settlement contracts, included in Other assets
—

 
—

 
129

 
129

Discontinued operations investments, included in Other liabilities
11

 
60

 
—

 
71

Separate account business
28

 
381

 
41

 
450

Total assets
$
1,735

 
$
36,832

 
$
2,342

 
$
40,909

Liabilities
 

 
 

 
 

 
 

Derivative financial instruments, included in Other liabilities
$
—

 
$
—

 
$
(2
)
 
$
(2
)
Total liabilities
$
—

 
$
—

 
$
(2
)
 
$
(2
)
Table of reconciliation for assets and liablities measured at fair value on a recurring basis using significant unobservable inputs
The tables below present a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2011 and 2010.
Level 3
(In millions)
Balance at
January 1,
2011
 
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)*
 
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss)
 
Purchases
 
Sales
 
Settlements
 
Transfers into
Level 3
 
Transfers out
of Level 3
 
Balance at
December 31,
2011
 
Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2011 recognized in net income (loss)*
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
624

 
$
(11
)
 
$
(1
)
 
$
484

 
$
(204
)
 
$
(149
)
 
$
79

 
$
(340
)
 
$
482

 
$
(12
)
States, municipalities and political subdivisions
266

 
—

 
(1
)
 
3

 
—

 
(92
)
 
—

 
(5
)
 
171

 
—

Asset-backed:
 

 
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 

 
 

Residential mortgage-backed
767

 
(16
)
 
(11
)
 
225

 
(290
)
 
(60
)
 
—

 
(163
)
 
452

 
(6
)
Commercial mortgage-backed
73

 
20

 
(7
)
 
81

 
(27
)
 
—

 
—

 
(81
)
 
59

 
—

Other asset-backed
359

 
(9
)
 
5

 
537

 
(341
)
 
(99
)
 
2

 
(111
)
 
343

 
(5
)
Total asset-backed
1,199

 
(5
)
 
(13
)
 
843

 
(658
)
 
(159
)
 
2

 
(355
)
 
854

 
(11
)
Redeemable preferred stock
3

 
3

 
(3
)
 
—

 
(3
)
 
—

 
—

 
—

 
—

 
—

Total fixed maturity securities
2,092

 
(13
)
 
(18
)
 
1,330

 
(865
)
 
(400
)
 
81

 
(700
)
 
1,507

 
(23
)
Equity securities
26

 
(2
)
 
2

 
66

 
(27
)
 
—

 
5

 
(3
)
 
67

 
(3
)
Derivative and other financial instruments, net
25

 
3

 
—

 
1

 
(19
)
 
—

 
—

 
—

 
10

 
2

Short term investments
27

 
—

 
—

 
39

 
—

 
(29
)
 
—

 
(10
)
 
27

 
—

Life settlement contracts
129

 
33

 
—

 
—

 
—

 
(45
)
 
—

 
—

 
117

 
5

Separate account business
41

 
—

 
—

 
—

 
(6
)
 
—

 
—

 
(12
)
 
23

 
—

Total
$
2,340

 
$
21

 
$
(16
)
 
$
1,436

 
$
(917
)
 
$
(474
)
 
$
86

 
$
(725
)
 
$
1,751

 
$
(19
)

Level 3
(In millions)
Balance at
January 1,
2010
 
Net realized investment gains (losses) and net change in unrealized appreciation (depreciation) included in net income (loss)*
 
Net change in unrealized appreciation (depreciation) included in other comprehensive income (loss)
 
Purchases,
sales,
issuances
and
settlements
 
Transfers into
Level 3
 
Transfers out
of Level 3
 
Balance at
December 31,
2010
 
Unrealized gains (losses) on Level 3 assets and liabilities held at December 31, 2010 recognized in net income (loss)*
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
609

 
$
9

 
$
56

 
$
45

 
$
60

 
$
(155
)
 
$
624

 
$
(4
)
States, municipalities and political subdivisions
756

 
—

 
15

 
(507
)
 
2

 
—

 
266

 
—

Asset-backed:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage-backed
629

 
(10
)
 
15

 
181

 
—

 
(48
)
 
767

 
(13
)
Commercial mortgage-backed
123

 
10

 
13

 
(8
)
 
7

 
(72
)
 
73

 
(2
)
Other asset-backed
348

 
6

 
30

 
30

 
—

 
(55
)
 
359

 
(1
)
Total asset-backed
1,100

 
6

 
58

 
203

 
7

 
(175
)
 
1,199

 
(16
)
Redeemable preferred stock
2

 
6

 
2

 
(7
)
 
—

 
—

 
3

 
—

Total fixed maturity securities
2,467

 
21

 
131

 
(266
)
 
69

 
(330
)
 
2,092

 
(20
)
Equity securities
11

 
(4
)
 
1

 
17

 
8

 
(7
)
 
26

 
(5
)
Derivative and other financial instruments, net
(11
)
 
(1
)
 
—

 
37

 
—

 
—

 
25

 
(1
)
Short term investments
—

 
—

 
—

 
37

 
1

 
(11
)
 
27

 
—

Life settlement contracts
130

 
29

 
—

 
(30
)
 
—

 
—

 
129

 
10

Discontinued operations investments
16

 
—

 
1

 
(2
)
 
—

 
(15
)
 
—

 
—

Separate account business
38

 
—

 
—

 
3

 
—

 
—

 
41

 
—

Total
$
2,651

 
$
45

 
$
133

 
$
(204
)
 
$
78

 
$
(363
)
 
$
2,340

 
$
(16
)
Carrying amount and estimated fair value of financial instrument assets and liabilities not measured at fair value
The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities which are not measured at fair value on the Consolidated Balance Sheets are listed in the table below.
December 31
2011
 
2010
(In millions)
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
Financial assets
 
 
 
 
 
 
 
Notes receivable for the issuance of common stock
$
22

 
$
22

 
$
26

 
$
26

Mortgage loans
234

 
247

 
87

 
86

Financial liabilities
 
 
 
 
 
 
 
Premium deposits and annuity contracts
$
109

 
$
114

 
$
104

 
$
105

Short term debt
83

 
84

 
400

 
411

Long term debt
2,525

 
2,679

 
2,251

 
2,376